While you're paying off your debt, it's important to steer clear
of common pitfalls that could make your life harder.

Here are some mistakes to avoid when it comes to paying back your
student loan debt:

1. You wait until the end of the grace period to begin making
payments

You'll likely receive a grace period of six months after
graduation before you have to start paying back your debt.

Sounds good, right?

Wrong. The grace period is kind of a trap.

"Most student loans begin accruing interest the moment you
graduate, and that interest adds up," Anna Khayet, head of
product marketing for student loan refi at online lending website
SoFi, tells Business Insider.
"Any payments you can make sooner helps cut down on the
capitalizing interest."

2. You forget about auto pay

"Automatic payments will deduct the amount directly from your
checking account, ensuring you don't incur late fees," Khayet
says. "And if you set up auto pay on your monthly loan payments,
most loan providers will likely give you a 0.25% rate discount."

3. You don't strategize

If you have multiple student loans with very different interest
rates, the way you pay them off can make a difference in how much
interest you pay in the long run.

So it's important to strategize.

"If you make the largest of your payments on the loans with the
highest interest rates, and pay just the monthly minimum payments
on the rest of your loans, then you'll make the biggest dent in
what you owe and save the most on the accruing interest," she
says. "Remember that there are no pre-payment penalties for
paying off a loan early on federal loans or on most private
loans."

"Consolidating both federal and private loans into one private
loan can also be an option, but you would then lose some of the
protections that come with federal loans," she says. "Instead,
consider refinancing private loans at a lower interest rate,
which doesn't just simplify the payment process but also saves
you money."

5. You don't properly prioritize your student loan debt

Khayet says that young people should first and foremost
prioritize their organization's 401(k) match program, to scoop up
"free money."

Next, it's important to set up an emergency fund that can cover
living expenses for at least three months.

After that, your student loan debt should be your next financial
priority.

"Although most of us think we'll pay off student loans in 10
years, many Americans end up taking 20 years to pay off their
loans, well into their 40s or 50s," she says. "You should
prioritize paying off student debt before making other large
investments in order to get the most bang for your buck."